Factors that Impact the Cost of Cottage Insurance in Ontario

There are many ways to spend your vacation days. Some families travel to a different country. However, others will spend their days at the lakehouse or countryside cottage. A cottage offers an ideal place for children to take a break from school and for parents to escape their everyday work routine. 

Much the same as with any valuable asset, a cottage should be insured to protect it against unforeseen events. If you own a cottage in Ontario, here are some key points you need to know.  

What is Cottage Insurance?

Cottage insurance is similar to that for the home, except it’s used to cover your vacation property. Most banks will ask you to show proof of insurance for the property for you to get a mortgage. This insurance will apply for the following dwellings: 

• Cottages
• Lakehouses
• Chalets
• Cabins 
• Vacation homes 
• Seasonal properties 
• Lodges 

Furthermore, many lenders will only offer you insurance for your property if they also provide insurance for your home. Whether it’s for a seasonal or secondary residence, cottage insurance is added to your home insurance policy. 

Types of Cottage Insurance

A secondary insurance policy is standard for a property that is occupied year-round by a member of your family. A season insurance policy will cover property that you use seasonally. For example, if you visit a cottage frequently on weekends during the summer and winter, it would be considered a secondary property. A cabin that you can use only during the summerwould be a seasonal property. As with other insurance, you can choose the level of coverage that is right for you. 

What Will Cottage Insurance Cover?

Cottage insurance usually protects you against standard risks. This means you will be covered for issues such as theft and environmental damage to the structure and/or property. 

There are two types of coverage available:

• All Risk: This will cover your cottage or cabin against all types of loss (except for those excluded on your policy). 
• Basic Coverage: This will safeguard you against common claims like fire, explosion, smoke, and water damage. Please note that specific issues must be listed in your policy for you to have coverage for them. 

What Will Cottage Insurance Not Cover?

Depending on your policy, there may be certain items that will not fall under your plan. They can include the following: 

• Frozen pipes
• Wear and tear
• Damage caused by animals or insects 
• Deliberate damage 
• Neglect by the property owner
• Mold 
• Septic backup
• Damage caused by earthquakes and landslides

How Much is Cottage Insurance?

The costs of cottage insurance will range from $800 to $3,000 or more annually. The amount is determined by factors related to your property, such as land size, value, location, and/or amenities. 

Factors that Will Impact the Cost of Cottage Insurance

Many factors can impact the cost of your insurance. Depending on your insurance company, here are some things that they may assess:

• Is the cottage close to services such as fire stations or hydrants?
• Are the roads leading to your cottage maintained year-round?  
• What are the renovation costs? 
• What is the primary heating source?
• How often is the cottage occupied? 
• Is there a security system?
• Does your property have features such as a shed, wood stoves, or fire pits? 
• Are the contents of the cottage kept on the property? 
• How is the property constructed? 
• Do you rent out your cottage? 

A cottage can be a pleasant way to spend some quality time with family and friends. When emergencies occur, it is important to keep your property protected. If you are looking for more information regarding cottage insurance, contact our experts here at Tanner Insurance. We are happy to help provide peace of mind, helping you make the most of your personal oasis in the great outdoors!